Accounting · Marginal Costing Tools
Match the situational decisions in List I with the most suitable marginal costing tools in List II: List I (Situational Decisions) (a) Whether to accept an export order at a price lower than domestic selling price (b) Choosing between two mutually exclusive machines with different cost structures (c) Determining impact on profit of a change in selling price (d) Decision to discontinue a product line (e) Evaluating the benefit of utilizing the capacity List II (Marginal Costing Tool) (i) Relevant Cost Analysis (ii) Differential Costing (iii) Cost-Volume-Profit Analysis (iv) Contribution Analysis (v) Opportunity Cost Select the correct match:
- 1(a)-(v), (b)-(ii), (c)-(iii), (d)-(iv), (e)-(i)
- 2(a)-(i), (b)-(ii), (c)-(iv), (d)-(v), (e)-(iii)
- 3(a)-(v), (b)-(i), (c)-(iii), (d)-(ii), (e)-(iv)
- 4(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv), (e)-(v)✓
Correct answer
(a)-(i), (b)-(ii), (c)-(iii), (d)-(iv), (e)-(v)
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